Staking crypto involves holding and locking a specific cryptocurrency to support a network's operations. By staking crypto, individuals help validate transactions and secure the blockchain network. In return for their contribution, validators receive staking rewards in the form of additional cryptocurrency. Staking incentivizes participation and helps maintain the network's security and consensus, while also allowing individuals to earn rewards by actively supporting the blockchain ecosystem.

Not all cryptocurrencies have staking because staking requires a specific blockchain network architecture that supports the Proof-of-Stake (PoS network) consensus mechanism. PoS allows users to participate in the network by staking their coins instead of mining with computational power like in Proof-of-Work (PoW) systems. Cryptocurrencies that have staking typically prioritize energy efficiency, scalability, and network security, which PoS consensus can provide. It is a design choice made by cryptocurrency developers and communities to promote participation and incentivize holding coins for network support. Additionally, not all cryptocurrencies need staking as their specific use cases or goals may not align with this particular mechanism. Learn more about Proof of Work vs. Proof of Stake.

Staking allows individuals to earn rewards by staking their coins. This incentivizes long-term holding and encourages network participation. Staking crypto also contributes to the security and decentralization of the blockchain network by distributing validation power among validators. This reduces the risk of centralization and makes the network more resilient against attacks. Staking also aims to improve scalability by eliminating the need for energy-intensive mining processes.

You will receive rewards twice a week from your staked assets on Kraken.